5 myths about buying Life Insurance in India

Insurance happens to be one of the leading service sectors as on date. You all must be very well aware of the basic classification that is obvious in the Insurance sector, which is none other than the two wings of Life Insurance and General Insurance respectively. Even though General Insurance is taking ground in recent times, Life Insurance has been around for quite some time now. You can easily find a good number of people around you who have invested in a Life Insurance policy with the view of getting life protection in case of some or the other unforeseen condition. However, even though, the Life Insurance business has been prevalent for quite some time now and that also with people being welcoming about the same, there are still some myths associated with buying Life Insurance. Today, we are going to throw some light on the five vital myths that are closely related to buying Life Insurance.

MYTH I:

At a very basic level, one misconception that happens to be one of the greatest myths as far as Life Insurance coverage is concerned is the general notion that if you happen to be a sole individual who does not have any dependents to take care of, then in that case you can do without such a policy. However, the fact here is that even if you are a single individual, at times there are a number of liabilities associated with you that need to be taken care of, which in a case of your death can be easily dealt with, with the help of such a policy. Moreover, if you invest in a life insurance policy, then you can even get a chance of contributing a lump sum to a charitable trust of your choice.

MYTH II:

Yet another myth associated with buying of Life Insurance policy is that many people are of the opinion that they cannot afford a Life Insurance policy. However, the fact is such a conclusion always remains impractical. In today’s date, insurance service providers are known to be highly innovative, which has eventually given birth to the concept of customization. With the help of this particular alternative, you get the opportunity of designing your Life Insurance policy is such a manner that it perfectly fits into your budget thus making it an affordable option.

MYTH III:

Apart from this, ignorance of individuals gives rise to yet another myth in which they tend to strongly believe that their present health condition is such that it will be next to impossible for them to qualify for a Life Insurance policy. However, the problem here is that people fail to understand that there are a number of parameters taken into consideration by insurance service providers before insuring someone, which is why a particular person’s health does not end up becoming the ultimate deciding factor.

MYTH IV:

You all must be well aware of the term insurance coverage that is offered to individuals at their respective workplaces. Their individuals tend to assume that term insurance coverage is sufficient to take care of their liabilities as well as dependants in case of some extreme circumstances, which is nothing but yet another unreasonable myth. The fact here is that if you have a number of expenses to take care of, which are likely to pass on to your dependents in case of your death, then in such a situation availing to a separate Life Insurance policy becomes a must.

MYTH V:

Last, but not the least comes the myth that revolves around the bottom line dreams of individuals, in which they tend to see other investment options as profitable bets as compared to a Life Insurance policy. However, here it becomes essential for them to realize that there is a vast difference between the general investment alternatives and a Life Insurance policy, which is exactly why making a comparison among them becomes totally baseless.

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